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Winning the digital structural transformation: The future of the photo and imaging
market as a digital ecosystem
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The current digital structural transformation considerably increases the
pressure on traditional industries. This also includes the photo and
imaging
industry.
The
digital
transformation
requires
far-reaching
structural reforms in all areas of the market: From manufacturers to users
and consumers, and back. The Photoindustrie-Verband, together with
photokina, will take a proactive stance towards this challenge in the coming
months and years.
The technological advancement of the past decade in the area of internet
technologies is breathtaking. Mobile internet, predictive analytics, humanoid
robotics, hologram and HoloLenses, 3D printing for private households, webbased contact lenses for diabetics, drones and hot air balloons, which send open
WiFi to Earth, as well as self-driving vehicles are only some examples of the
beginning of the digital social transformation. A lot of these innovations – and
this is very good news – would not have been possible without imaging
technologies.
However, value-add and monetization have mostly passed by the traditional
companies in the photo and imaging industry in past years. This includes selling
Smartphones as camera replacements, new product categories such as Action
Cams or the creation and control of image communication by international
corporations such as Apple, Google, Yahoo and others. These new market
players from the non-imaging sector understand the internet language almost
perfectly. It is especially these barely-regulated digital ecosystems and Imtechs
(web and App-based companies with imaging products and services) that are
taking over markets across all industries with their platforms and their
sophisticated Walled Garden strategies (offering consumers products in their own
software worlds as “protected gardens”, for example Google Chrome). Their
recipe for success lies in the harmonious meshing of hard and software, through
optimal interlocking; the platform-pampered consumers are wooed by and served
attractive products and services easily, globally and under one roof.
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Photoindustrie-Verband e.V. I Mainzer Landstraße 55 I 60329 Frankfurt am Main I Germany I Tel. +49 (0) 69 / 25 56-14 07 I Fax +49 (0) 69 / 23 65 21
info@photoindustrie-verband.de I www.photoindustrie-verband.de
“Why can’t established companies from the photo and imaging industry create
their own digital ecosystems?” asks Rainer Führes, Chairman of the Board of the
Photoindustrie-Verband. “In order to provide the industry with sustainability for
the future, it is now necessary to make the world of digital ecosystems
accessible for the established photo and imaging suppliers. The
transformation in their own, platform-based, complete digital system offers many
advantages. In addition to convenient access to a variety of personalized
products and services, also from external suppliers, as well as a secure IT
environment, the consumer can play an interactive role in diverse and useful
networks.” Cognitive, self-learning systems render a valuable service for the
digital ecosystem of the future. Rainer Führes: “The photo and imaging industry
doesn’t want to offer just the basic technologies in these processes, but to
take an active role in determining their development and access future
monetization fields. It isn’t about protecting existing business areas and industry
parts from attackers, but to create new digital ecosystem from an existing stabile
platform.”
This could be one of the first initial strategies: In the last few years, consumers
have no longer been interested in owning (digital) products, but just to have
access to them. Today consumers stream music and films without loading them
onto their own devices. Even physical goods such as cars, bikes or, the example
of a power drill often used in this context, can be shared without the costintensive issue of personal possession. Why not also share photo and imaging
products and just pay for their use? This development in (digital) mobility is
included under the term “Share Economy”.
Many traditional companies come from the analog world and are currently
working at high speed on their own (digitalized) strategies in order to remain
competitive. The digital conversion requires fundamental structural reforms with
comprehensive adaptations. Why can’t imaging companies transform themselves
to a digital ecosystem in order to create stronger ties to their customers through a
variety of products and services, all from the same place? Then they would be in
a better position to react to competition with a driving force in order to confront
the new market players from the technology-driven non-imaging sector with their
own strategies: With appropriate solutions that will take existing business models
and adapt them to the modern age and to invent new models. The photo and
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Photoindustrie-Verband e.V. I Mainzer Landstraße 55 I 60329 Frankfurt am Main I Germany I Tel. +49 (0) 69 / 25 56-14 07 I Fax +49 (0) 69 / 23 65 21
info@photoindustrie-verband.de I www.photoindustrie-verband.de
imaging companies could use modern key technologies such as algorithm
and databased cognitive, self-learning systems in order to provide more
customers the greatest benefit and thus win over these customers. The
transformation to digital and open platforms offers an attractive and lucrative
solution, even though the reform of already existing structures will be much more
difficult than a new beginning with a clean slate.
From the perspective of the photo and imaging industry, the activities of many
start-ups and niche players (e.g. crowd investing and lending platforms, micro
payment systems) are welcomed because their agile market presence provide for
a needed impulse in competition for internet-based technologies. We need to use
them because many start-ups and niche players are searching for strategic
alliances with large companies, in order to use their infrastructures, experience
and customer base for themselves. In the end, this transformation will help
network giants, established companies, start-ups, but also consumers, because
the range of products and services will become more varied – virtually a “win-winwin situation”.
In the future the competence and the pool of experience of a single player in a
closed market will no longer be relevant, but the intelligent combination of diverse
infrastructures, skills and abilities of different market players. In the end, the
consumer will profit from these collaborations. This development will provide a
maximum benefit because the various strategic alliances will create a more
diverse selection of products, services and processes. By using uniform and
commonly agreed standards, the connection or exchange of hard and software
through open interfaces can be achieved. Thus, new consumer-oriented service
packages from various suppliers across a variety of industries and markets will
arise which can be marketed in the jointly created digital ecosystem.
Traditional photo and imaging companies now have the opportunity to meet the
challenges of the digital structural change so that they will not have to respond
defensively, but will be perceived as serious and innovative market players
who actively participate in reshaping the industry. At this point, the transformation
to a digital ecosystem requires an effective, alternative strategy, which must be
developed together and immediately.
Rainer Führes summarizes: “In the coming months and years, we will define
this transformation to a digital ecosystem with our market partners and bring the
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Photoindustrie-Verband e.V. I Mainzer Landstraße 55 I 60329 Frankfurt am Main I Germany I Tel. +49 (0) 69 / 25 56-14 07 I Fax +49 (0) 69 / 23 65 21
info@photoindustrie-verband.de I www.photoindustrie-verband.de
project forward. In 2016 photokina, the trade fair for the photo and imaging
sector, which takes place every two years, will also take this transformation into
account and contribute to the reshaping of the market. In the digital structure
change and processes, we see a great opportunity to redefine our own market
and secure sustainable growth.”
PIV
About Photoindustrie-Verband e.V. - The Imaging Association: Photoindustrie-Verband has its
headquarters in Frankfurt am Main and represents the photo and imaging sector in Germany and
worldwide. The abbreviation PIV stands for Photo Imaging Verband. PIV sees itself as the service
provider in the sense of sales promotion in the amateur and professional markets and regularly
publishes marketing data. With more than 50 members, PIV represents more than 90 procent of the
photo and imaging market sales in Germany. PIV is a co-organizer of the photokina – World of
Imaging – in Cologne. The first photokina took place in 1950. The 34st world trade fair for images
will take place in the Cologne exhibition center from 20 to 25 September 2016. PhotoindustrieVerband is the shareholder of Prophoto GmbH, whose corporate goal is to promote photography
and photokina mainly in the press, radio, television and new media.
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11/VIII/2015 - 20 August 2015
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Photoindustrie-Verband e.V. I Mainzer Landstraße 55 I 60329 Frankfurt am Main I Germany I Tel. +49 (0) 69 / 25 56-14 07 I Fax +49 (0) 69 / 23 65 21
info@photoindustrie-verband.de I www.photoindustrie-verband.de